UNIVERSAL EXPORTERS Vs. STATE OF U P

JUDGEMENT

(1.) In this petition, initially for direction to the Sales Tax Officer to issue forms III-A, who despite application after application since February, 1982, to 5th January, 1983, was sitting tight over the matter, subsequently amended for quashing order dated 3rd February, 1983, rejecting the petitioner's application dated 5th January, 1983, the basic controversy to be decided is if a registered dealer under the U. P. Sales Tax Act purchasing goods liable to tax on point of sale to the consumer from a registered dealer is entitled for these forms even if the goods have been purchased for export.

(2.) For this purpose it is necessary to extract Sub-rule (1) of Rule 12-A of the U. P. Sales Tax Rules which entitled a registered dealer to obtain these forms from the Sales Tax Officer. It runs as under : A registerd dealer who wishes to purchase any goods, liable to tax under Sub-section (1) of Section 3-A or Section 3-AA at the point of sale to the consumer, without payment of tax shall furnish to the selling dealer a certificate in form III-A, duly filled in and signed by him.

(3.) It entitles a dealer who does not want to pay tax on purchase of goods, mentioned in Section 3-A and Section 3-AA (which now stands deleted but was in force in the assessment years with which this petition is concerned) to furnish a declaration to its selling dealer that he was purchasing it for resale. What is the purpose of this rule ? Why this exemption from tax ? Is it to be read in isolation, as suggested by the learned counsel for the assessee, or it has been framed with objective. It is well-known that in the scheme of the Act goods are taxable either at single or multi-point. Normally single point is either at manufacturer, or import or sale to consumer. Little difficulty may arise in first two. But sale to consumer in series of sales may not be easy to determine. Further a dealer registered under the Act is empowered to recover an amount equivalent to the amount of sales tax under Section 8-A(2)(b) from the person to whom the goods are sold. But if it is sold to a dealer who is also registered and purchase is made for resale, then obviously it is not sale to the consumer and the purchasing dealer may be absolved of liability of paying tax.